Foreign investment is a lifeline for any country on a path to development and spurs economic activity. Increase inflow of investment means that foreign investors realize the potential of a business destination. Foreign capital is very sensitive to business sentiments. In this light when J.P. Morgan decides to invest hugely in its Mexico units then it’s a sign that Mexico is on the right path to prosperity.



A capital increase of $250 million has been made by J.P. Morgan to its Mexican subsidiaries, J.P. Morgan Grupo Financiero, S.A. de C.V. The sum will permit the global financial institution to provide additional lending capital to its Mexican customers. This fund totals up the firm's total capital in Mexico to approximately $653 million which is 62% capital increase and makes J.P. Morgan the 8th largest Mexican financial group. The firm's wholesale business is the largest in Mexico.

Planning is on for granting additional capital to Banco J.P. Morgan. The pending final regulatory once approved, will lead to increase in its lending limits in the country and provide its growing list of clients with more credit opportunities. J.P. Morgan Casa de Bolsa may also be funded with additional capital, which will allow it to increase its activities in the Mexican equity market.

Eduardo Cepeda, Senior Country Officer of J.P. Morgan in Mexico noted that this capital increase is further evidence of J.P. Morgan's long-term commitment to Mexico, a country where the bank is making significant investments in recruiting and developing staff, as well as in state of the art systems. They are excited with the opportunity this additional capital provides them to do more with their clients.

The prime beneficiaries of such investments made in financial sectors will be mainly Mexico real estate market and infrastructure.

J.P. Morgan’s association with Mexico’s financing needs can be traced back to 1886 but there was of much significant development until 1994. It was in this year when J.P. Morgan started to operate the Representative Office as a financial institution in the country. Since then the bank has never looked back instead marched forward to grow in the one of the leading financial groups in the country. It now occupies six full floors in Torre Optima in the Lomas de Chapultepec neighborhood, with a representative office in Monterrey. The firm's more than 200 Mexico based employees provide a broad range of financial services in the firm's leading divisions: Investment Bank, Private Bank and Treasury & Securities Services.

It bodes well for the real estate market in Mexico that big institutions have confidence in Mexico’s economy and is a prime FDI destination in the region.